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The Ghana Hotel Association (GHA), on Wednesday, called on the government to implement specific measures in support of the industry to allow the Association to revive collapsing hotels from the negative effects of the Covid-19 pandemic.
The appeal followed the drastic drop in hotel operations, especially occupancy rates since the nation recorded its first cases of the pandemic in March.
Association President Dr. Edward Ackah-Nyamike at a press conference organized by the Association on the topic: “Six months after the Covid-19 pandemic: Overview of government support for the hotel sector,” said that the hotel industry was one of the companies most affected by respiratory disease.
He said that the measures implemented by the government to contain the pandemic, such as the closure of borders, including the Kotoka International Airport, the prohibition of social gatherings such as conferences, events and restaurants, had a serious impact on the economic activities with which the hotels were no exception.
The hotel industry also faced a number of shocks such as the cancellation of all bookings for individuals, groups and conferences, the complete closure of some hotels accompanied by challenges of maintaining facilities, he said, adding that at least 64 percent of the hotels closed. at one time or another from March 2020 to date.
Other impacts were a drastic reduction in occupancy rates to below 20 percent for hotels that remained open, and the temporary and permanent layoff of some hotel workers, which caused more than half of hotels in Ghana to lay off permanently. thousands, conservatively. more than 40,000.
The challenges with the payment of salaries, pensions, contracted loans, taxes, credit facilities to vendors and suppliers, utility bills especially for water and electricity and challenges with the payment of rents for hotels that operate in rented premises were other effects of the Covid-19, Dr. Ackah – Nyamike said.
Despite the hotel industry meeting with the president about his announcement to pay the water bill for all Ghanaians, the business community was later exempted.
According to an explanation from the Minister of Sanitation and Water Resources, Ms. Cecillia Abena Dapaah, and the Ghana Water Company, Dr. Ackah-Nyamike said that the industry during the six-month period, still received their water bills and electricity to make payments.
The GHA president said he was sad to note that 4 months after the online application for the soft loan of ¢ 1 billion GH allocated by the government to be disbursed by the National Board of Small-Scale Industries (NBSSI) As part of the measures to reduce the effect of Covid-19 on companies, only 2 percent of GHA members had benefited from the disbursement.
The Association appealed to the government for a refund of water bills paid by hotels during the months of April to September 2020, introduce the 50 percent discount in hotels for the last quarter of the year and insist on the NBSSI to accelerate the loan disbursement. process.
He also asked the government to inculcate the Ministry of Tourism, Art and Culture to accelerate the Ghana Tourism Development Project grant, issue more and better details on the GH ¢ 3 billion grant facility and how luxury hotels could access to her.
The GHA also called on the government to suspend the payment of VAT, the National Health Insurance Tax and the GETFund by hotels during the last quarter of the year or to put all hospitality companies at the VAT rate of 3 percent, for Income Tax.
He also called for an extension of the December 31, 2020 deadline for forgiveness of fines on major debts to taxpayers to redeem outstanding debts owed to the Ghana Revenue Authority.
The Association also implored the government to order all Metropolitan, Municipal, and District Assemblies and hotel regulatory bodies to extend the deadline for payment of regulatory and licensing fees, including property fees, until December 31, 2020.
